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Termination of the loan agreement

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Agreement signature is an only way of approval of the transaction assuming issuance of credit. Even when receiving a quick loan online between the parties the document in which nuances of cooperation will be specified consists. Usually creditors position contracts as the documents which are not subject to cancellation, however in practice of indissoluble transactions does not exist. The borrower can agree on separate conditions of early closing of the contract with the creditor or challenge the document through court. For this purpose it is necessary to provide a row of the proofs confirming violation of an order of the inference of the transaction or other errors of the creditor.

 of the Condition of the inference of the loan agreement 

the Financial institution providing to the borrower a credit product is engaged in compilation of the contract. All terms of transaction which the parties discuss in advance register in this document.

the Loan agreement has legal force. It is used during judicial proceedings in case of origin between the parties of disputable situations. From the conditions which are agreed on in the document the participants of the credit program shall be repelled at a stage of cancellation of loans. Any violation of the transaction leads to origin of a conflict of interest therefore the text of the contract is studied to the smallest details.

of  B the documents regulating crediting process is specified: 

• Loan size.

• Transaction validity period.

• Relevant interest rate.

• Schedule and diagram of loan repayment.

• Conditions of charge of penalties.

• Varieties of sanctions.

• Parameters of termination of the transaction.

• Rights and obligations of the Parties.

If the borrower plans to refuse services of financial institution, early loan repayment is allowed. The bank has no right to hinder with premature execution of obligations therefore the penalty for early closing of the transaction is not provided. However agreement cancelation causes a row of complications. everything is extremely simple and clear to

With a credit part of the transaction. If the borrower deliberately refuses to return the received money about any extinction of the transaction there cannot be even a speech. An exception are separate cases when the creditor violates terms of agreement, but the facts of ignoring of parameters of the contract still need to be proved. It is necessary to make it during the judicial proceedings initiated by the borrower.

can Challenge and reconsider conditions of receiving supplementary services if similar services were imposed to the client by financial institution. Not only the options directly connected to crediting process but also absolutely useless products belong to the accompanying sentences of bank. As a result without damage it is possible to refuse insurance, service, paid notifications and other services.

  How to terminate the contract of crediting?  

the contract Regulating crediting process can be challenged, terminated, nullified or reconsidered as agreed by the parties. In many respects the choice of any given method depends on results of the legal analysis of the document. For example, only those contracts in the course of which inference fundamental mistakes were made are recognized as insignificant. Usually documents void or recognized as debatable in court.

of   of the Prerequisite to termination of the loan agreement:  

1. Existence of the hidden commissions and payments.

2. Imposing to the client of optional services.

3. Violation of one of the parties of terms of agreement.

4. One-sided change of parameters of the transaction.

 It is important! Early loan repayment does not allow to terminate the current agreement. Depositing funds till a deadline of scheduled payments leads to premature closing of the contract. 

of Indissoluble contracts does not exist. However for termination of the transaction the affected party has the right to demand indemnification. In other words, the creditor can assign penalties. After payment of compensating and execution of other conditions the agreement is terminated. If it is impossible to compensate losses, the party whose interests are infringed, can initiate judicial and enforcement proceeding for recovery by enforcement of debts. In this case after execution of reasonable requests the contract is terminated through court.

  Methods to terminate the loan agreement:  

1. Voluntary or compulsory cancellation.

2. A reasonable failure from execution of contractual conditions.

only the court after reviewing of case papers can Force the parties to termination of the transaction. That is on cancellation of the contract several months can leave. To spare time and to get rid of legal costs, it is necessary to approve voluntarily agreement cancelation within the world transaction.

the Failure from the contract represents one-sided cancellation of the document. The customer has the right for 14 days from the moment of the inference of the transaction to refuse cooperation without negotiations, clarification and disputes. For this purpose it is necessary to return to the creditor the borrowed tangible assets or money.


  For the purpose of   to   cancellation of the contract with bank   is necessary for   

• To refuse obligation fulfillment for 14 days from the moment of signing of the transaction.

• To address to the serving financial institution if two weeks for a failure passed.

• To agree on with the creditor conditions of termination of the transaction by the inference of the settlement agreement.

• To file a complaint if the staff of the serving organization hinder with termination of the transaction.

• To initiate judicial proceedings by submission of the claim and documentary proofs of violations.

If has to solve a conflict situation through court, during submission of the claim it is necessary to specify termination causes of the contract. For example, to provide proofs of imposing of optional services or existence of the hidden commissions. However it is not recommended to stop payments under the contract until the termination of the transaction.

Under current laws all financial liabilities of the borrower stop only after agreement cancelation or recognition of the contract invalid. The failure from execution of duties is agreement breach for which sanctions rely. During court the charge of penalties, penalty fee and penalties stops.


  How to refuse agreement signature with bank?  

the Potential borrower can conclude with anyone contractual relations, beforehand having agreed on all terms of transaction. There is a row of situations when the court forces the person to sign the contract. However it is about special circumstances. The citizen shall undertake financial or other liabilities of own will.

of   According to norms of the current legislation, creditors cannot:  

1. To unilaterally change terms of transaction or to impose additional requirements.

2. To introduce amendments in agreement parameters without advance approval with the borrower.

3. To hinder with crediting for a reason for refusal of the client of signing of the accompanying contracts.

4. To refuse compensation of the loss caused to the client as a result of breach of agreement.

Thus, the imposed additional terms, popular among financial institutions, are semi-legal. The law protecting the rights of customers prohibits to reject the candidacy of the borrower who is not planning to sign the contract for additional service. However the creditor is not obliged to report a cause of failure. As a result there is a legal collision. The financial institution has no right to impose services, but in practice the failure from the inference of the additional contract leads to a deviation of the candidate of the borrower.

 Is important! Physical persons and legal entities under the current law have the right to refuse the inference of any contract. Enforcement to signing of documents contradicts the free will of citizens set by laws.  the Creditor can refuse to

design of the transaction only under the terms of output of a loan. It is about a mismatch to requirements of financial institution concerning income level, age, length of service and other qualities of the client. Any bank refusing to issue the credit until the borrower orders defined services or will buy a product, breaks the law. An exception to the rules are only the transactions connected to support and loan insurance.
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